Consumers file claims directly with the surety company, not the Contractors State License Board (CSLB). Scope of Cover found that a contractor's license is suspended if a replacement bond is not received within 30 days of a cancellation notice. If a contractor uses a cashier's check instead of a bond, a consumer must file a civil action to make a claim.
Key figures
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If a bond reinstatement notice is not received by CSLB or a replacement bond is not received by CSLB before the end of the 30-day period, the license is suspended.Open the source
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The amount of a disciplinary bond may not be for less than $25,000 or greater than 10 times the contractor license bond, and it must be on file with CSLB for at least two years.Open the source
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The amount of a disciplinary bond may not be for less than $25,000 or greater than 10 times the contractor license bond, and it must be on file with CSLB for at least two years.Open the source
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An acceptable bond must be received at the CSLB Headquarters Office within 90 days of the effective date of the bond.Open the source
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Allow for processing time by arranging for a new bond four weeks before the old one expires.Open the source
#What Is a Contractor Bond Claim?
A claim against a California contractor bond is a demand for payment made to the surety company that issued the bond. These bonds must be written by a surety company licensed through the California Department of Insurance. The bond itself is not transferable from one license or qualifying individual to another.
#How Are Bond Claims Filed?
Consumers must file claims directly with the surety company. The Contractors State License Board (CSLB) does not process claims filed against surety bonds. This process is different if the contractor secured their license with a cashier's check instead of a bond from a surety insurer.
For a cashier's check, a consumer must file a civil action. The CSLB can only make payments from a cashier’s check under a court order.
#What Is a Disciplinary Bond?
A disciplinary bond has specific requirements. The minimum amount is $25,000, and it cannot exceed 10 times the standard contractor license bond. This type of bond must remain on file with the CSLB for a minimum of two years.
#Key Deadlines for Contractors
An acceptable bond must be received at the CSLB Headquarters Office within 90 days of its effective date. If a bond is canceled, a replacement must be filed within a 30-day period to avoid license suspension. To allow for processing time, contractors should arrange for a new bond four weeks before the old one expires.
Frequently asked questions
Who handles a claim against a contractor bond?
The surety company that issued the bond processes the claim. The California CSLB does not handle claims filed against surety companies.
What happens if a contractor's bond is canceled?
The contractor's license will be suspended if a replacement bond is not received by the CSLB before the end of the 30-day period after a cancellation notice.
What is the minimum amount for a disciplinary bond?
A disciplinary bond must be at least $25,000 and cannot be more than 10 times the amount of the contractor license bond.
How long must a disciplinary bond be maintained?
A disciplinary bond must stay on file with the CSLB for at least two years.
What if the contractor posted a cashier's check instead of a bond?
A consumer must file a civil action. The CSLB requires a court order to make payments from a cashier's check.
Sources
- CSLB: Bond basicsContractors State License Board · retrieved
- CSLB: General bond informationContractors State License Board · retrieved
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